$21 million investment yields 4,000 customers for Sasktel
Author:
David Maclean
2003/03/10
Sasktel, our government-owned telephone company wants to be a television company. So much so, they're sinking $53 million ratepayer dollars in their Max television service.
And how many customers does $53 million get you Since its launch in September, Sasktel's television service has attracted 3,969 customers, according to information obtained by the Canadian Taxpayers Federation (CTF). Of course, it's likely a large percentage of those 4,000 are Sasktel employees and suppliers.
To date, Sasktel has spent more than $21 million on the project, which means about $5300 per customer. Another $32 million is planned for the near future. And that doesn't include the $34 million they already spent on their Multi-media Expansion project, which involves pushing fiber optic lines to outlying communities around the province. Their stated goal is to capture 20 per cent of the total television market currently controlled by private concerns like Access, and Shaw communications.
It appears they are a long, long way away from that goal.
The question that just won't go away is this: Why is Sasktel the only company in North America currently operating a digital interactive television service Are they that far ahead of the curve, or squarely behind the eight ball Another question: What is the public policy objective of a crown corporation offering television service to compete with existing cable and satellite operators
We find no fault with private businesses taking risks, expanding their business and striving for growth. Private corporations are usually held to the highest standards of accountability - make money or lose your job. Improve share price, or say goodbye to your career and professional reputation.
Sasktel operates in a vacuum devoid of competition and accountability. Sasktel's top officials are NDP apparatchik - lucky recipients of patronage pork, and may well be sailing into the sunset after the next election (only to be replaced by Sask Party apparatchik). In the hands of partisan appointees we trust our province's largest and most important Crown corporation. That's why the CTF continues to monitor and question Sasktel's steady mission creep
Every move Sasktel makes in Saskatchewan can have an immediate and negative impact on private Saskatchewan businesses. In a recent letter appearing in many weekly newspapers across Saskatchewan, Sasktel President Don Ching took exception to some of our questions regarding Sasktel's business practices. According to Mr. Ching, suggesting Sasktel should not be delivering television services "borders on irrational."
Me thinks thou doth protest too much, Mr. Ching.
At the end of the day we look at our phone rates to see the return on taxpayer investment in Sasktel. Do Saskatchewan residents benefit from public ownership of the telephone lines When you compare our phone rates to those of other provinces, we're pretty much average. Revenues aren't cycled back into lower rates; they're turned over to the provincial government to be squandered on NDP make-work projects.
We've got a funny feeling about Sasktel's venture into the television business. Feels a lot like when the government decided to build potato storage facilities and meat packing plants.